Charting Your Financial Future: How to Escape the Vicious Cycle of Student Debt and Low Income {With – Agnes Powers}
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
STYRON’S INTRODUCTION
My cousin Agnes recently shared a thought-provoking post on Facebook that got me reflecting on the growing university tuition crisis. Agnes obtained her history degree when universities prioritized affordable education, highlighting a stark contrast to the present. Her parents, a Minister and Teacher could afford her tuition. Today the cost of tuition has soared into the tens or hundreds of thousands of dollars, placing a significant burden on students and their families. Even more concerning is the practice of encouraging naive 18-year-olds to shoulder the weight of substantial student loans, all while being unaware their degree might command only meager wages.
The ethical dimensions of this situation come into sharp focus when we observe the consistent annual escalation of college tuition rates, often surpassing two to three times the inflation rate. The pertinent question arises: where is this influx of money truly being allocated? Shockingly, it appears that a substantial portion of these funds are being diverted toward extravagant amenities that hardly contribute to a meaningful educational experience. For instance, certain universities boast an excess of overhead staff, with notable examples like Stanford University maintaining a staff of 80 dedicated to diversity, equity, and inclusion, while the University of Illinois and the University of Maryland each employ 71 such staff members.
Equally perplexing are the elaborate recreational facilities that have sprung up on campuses, including multiple Olympic-sized swimming pools and student unions reminiscent of the futuristic aesthetics seen in Star Trek’s iconic Enterprise ships. Even the term “dorms” has undergone a transformation, now describing luxurious apartment-style accommodations. These exorbitant expenditures cumulatively amount to millions annually yet offer ZERO value to the quality of education our children receive.
We are facing a significant crisis in higher education. The path we are currently treading is fraught with ethical concerns and financial improprieties. As responsible citizens, it is imperative that we address this issue with the seriousness it warrants. The escalating cost of a college education is not merely a financial burden; it is a symptom of a broader problem that demands our collective attention and concerted efforts.
“Views on Student Loan Debt” by Agnes Powers
“I graduated from college debt free in the 1970s because college was relatively inexpensive. My middle-class parents were able to pay for my college education easily. I earned a BA in History, a degree that was a “fun” degree. I am now 67 years old and work in a job that does not require a college education. I am glad I am a college graduate, but I didn’t need to attend college for my chosen career. Attending college vastly improved my life. But my life wouldn’t have been improved if I had been saddled with debt when I graduated. If I were a young person considering a History degree in 2023, I would only attend a community college. I definitely wouldn’t get deep in debt to get a History degree. I currently don’t make a lot of money, so I wouldn’t be able to pay for an expensive college education in 2023 with the job that I have now.
Colleges started getting expensive when society started pushing “college for everyone,” and student loans became easy to obtain. I don’t believe that everyone should go to college. Colleges would not be so expensive if fewer people borrowed outrageous amounts to attend college.
I think the general public needs to become more educated about paying for college. People who cannot pay for college must research ways to make college more affordable, such as scholarships, grants, or military training. I know people who started at a community college and eventually transferred to a four-year college to make attending college less expensive. But some community college credits don’t transfer to four-year colleges. Students need to understand if their credits will transfer and if they can complete a four-year college degree.
How about students who only get an associate degree at a community college and don’t want to earn a four-year degree? Sadly the community college associate degree completion rate is low. In 2023 a relatively large proportion of community college students drop out of school before they finish their associate degree. In several surveys, community college students have reported that juggling family demands and a job makes it difficult to complete their school assignments. The number of hours students work doesn’t leave much time to study, and the salary they receive from low-paying jobs often isn’t enough to cover living expenses. Somehow we need to find ways to make it easier for community college students to earn a living, take care of their families, and complete their school work.
I believe that high school counselors need to explain better the cost of attending college to high school students. Too many students don’t have a clue. Getting deep in debt for a degree that is not lucrative can be a financial nightmare.”
STYRON’S CONCLUSION – Empowering Education Choices: Navigating Debt and Income Realities for a Brighter Financial Future”
In the realm of shared passions, my brother Bill and Agnes stand out as examples. Their love for reading and history is unmatched; Bill’s knowledge rivals that of seasoned history majors, despite his diverse academic pursuits. Holding multiple STEM {Science, Technology, Engineering, and Mathematics} degrees, including a Ph.D. in Toxicology, Bill’s relentless work effort propelled him to a Vice President role at a major pharmaceutical firm. This achievement not only affords him financial freedom but also the luxury of indulging his historical interests prior to and in retirement, a testament to the rewards of diligent academic and professional endeavors.
Passion, as I’ve learned through my journey in photography, is a powerful driving force. My desire to improve my photography involves pursuing budget-friendly courses, both within the classroom and online. An invaluable piece of advice from a wise source, my mother, steered my direction. She advocated for first securing a value-added college education, finding a good job, and then pursuing my passion for photography. The reasoning – the belief that a college degree constitutes a significant investment, one that should ideally yield a positive return on investment (ROI).
Regrettably, higher education has seen a proliferation of degrees that offer minimal ROI, if any! This underscores the importance of employing critical thinking skills when making educational decisions, ensuring that each choice is a well-informed and prudent investment. As Agnes astutely pointed out, alternative avenues like trade schools, community colleges, and opportunities within the US military provide exceptional skills training, often accompanied by a great ROI.
Delving into the realm of academic disciplines, the fields of Science, Technology, Engineering, and Mathematics (STEM) emerge as particularly lucrative domains. STEM majors not only boast the highest starting salary, averaging an impressive $57,900 per year but also command the highest mid-career salary, with an average of $108,300 annually. A testament to the practical and financial benefits of pursuing such disciplines.
AGNES POWERS
Agnes, my cousin from my paternal side, and I didn’t have the chance to grow close during our childhood due to the distance that separated us across the states. However, through her Facebook posts, I’ve had the privilege of getting to know her better over time. Her writings have been a window into her world, revealing a person of striking beauty, intelligence, and eloquence. Among our family members, she stands out with the most eclectic and wide-ranging musical tastes. {Thank you for greatly expanding my musical taste and knowledge!}
What truly sets Agnes apart is her immense capacity for compassion and her selfless nature, always prioritizing the well-being of others above her own.
As I embarked on a search for pictures of Agnes, a captivating pattern emerged—she’s almost always engrossed in reading! This candid detail speaks volumes about her quest for knowledge and reinforces the qualities I admire.
I LOVE YOU, AGNES!!
ABOUT AGNES POWERS, IN HER OWN WORDS
“Even though I am a Daddy’s Girl, I owe a tremendous debt to my mom. My mother was well-read and spent more time reading books than in front of the TV, so all of us children became lifelong readers. Mom was a big believer in education and began teaching us as babies. I learned more from my mom at home than from my teachers at school. Mom made learning fun. Whenever I had problems with my classroom studies, my mom either tutored me herself or got me a tutor. My mom believed that public schools were only the beginning of our education, so our family attended plays and concerts, plus we often went to museums.
My sister, Julia, went to college without finishing high school, and my brother, Edward, was one of the most intelligent in his high school class. Even though my high school grades were not as good as my siblings, I managed to make better grades in college. My mom believed in me, even though learning did not come easy. If I did not have Pearl Marie McIver Powers as a mother, I would not have finished high school or college.
I applied to the United States Air Force Officer Training School (OTS) post-college. I completed the complicated, long OTS application process without help from anyone and miraculously was accepted. When I told my mom that I was going into the Air Force, my mom thought that I had lost my mind. But she supported me anyway. Mom bought me large suitcases with everything I would need for OTS. During my weekly phone calls from OTS to my mom, she always encouraged me, telling me she knew I would graduate. When I graduated from OTS, my mom, who had a fear of heights and had never been on a plane, took her first flight on a plane, accompanied by my dad and siblings, to see me graduate. Mom later told me that seeing me graduate was more important than her fear of flying. Several years later, my mom flew a second time when she visited me when I was stationed in Italy. When I was in Italy, my mom was very sick and thought she would die before she saw me again. So my mom and dad flew to Italy, and I took them on a whirlwind vacation in Italy and Greece.
When I resigned from my military commission, my mom became ill and suffered from congestive heart failure. About a month after getting my permanent job, my mom celebrated her 69th birthday. Mom was not well at all. She sadly told me I would be her only child who would live long enough to be considered a senior citizen. She also told me that no matter what I did with my life, she loved me. Three days after my mom’s birthday, she died. I was 33 years old.
I miss my mom every day, but I am so blessed to have had a mother who loved and had faith in me, even when I didn’t have confidence in myself. I am the woman that I am today because my mom had faith and believed in me.”
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I GIVE BECAUSE I CARE!
St Jude Hospital: The mission of St. Jude Children’s Research Hospital is to advance cures and means of prevention for pediatric catastrophic diseases through research and treatment. Consistent with the vision of our founder Danny Thomas, no child is denied treatment based on race, religion, or a family’s ability to pay.https://www.stjude.org/
Wounded Warrior Project: An American charity and veterans service organization that offers a variety of programs, services, and events for wounded veterans of the military https://www.woundedwarriorproject.org
Folds of Honor: Providing life-changing scholarships to the spouses and children of America’s fallen or disabled military. And now, our mission expands to the families of America’s first responders. On our watch, those who protect our freedoms and our families will know they are not forgotten. https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: A N0-Kill shelter that is a top-rated non-profit. They compassionately care for all their animals. https://wcnkas.org
Tunnel To Towers: Since 9/11, we have been helping America’s heroes by providing mortgage-free homes to Gold Star and fallen first responder families with young children and by building specially-adapted smart homes for catastrophically injured veterans and first responders. We are also committed to eradicating veteran homelessness and helping America to Never Forget September 11, 2001. https://dogood.t2t.org/give/320847/#!/donation/checkout
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
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